Gambling Model Analysis: The Revenue Strategy and User Rise of Encryption Games from GGR to NGR

robot
Abstract generation in progress

The Application of Betting Models in Encryption Games: Revenue Strategies from GGR to NGR

Before starting a new encryption gaming project or considering an investment, it is crucial to understand the GGR model in the gambling industry. GGR (Gross Gaming Revenue) is the most commonly used performance metric in the gambling industry, calculated as total bets minus total payouts (the amount won by players). Another important metric is NGR (Net Gaming Revenue), calculated as total bets minus total payouts, total bonus payouts, and total gaming tax payouts.

Insights from the Gambling Industry: From GGR to NGR, the Laws of Attraction for Encryption Games?

GGR has another calculation method: total bets multiplied by the house edge. The house edge refers to the percentage of total bets that the dealer ultimately wins. Even in relatively fair games, such as blackjack, baccarat, or dice games, there exists a house advantage ranging from 0.5% to 20%.

Insights from the Gambling Industry: From GGR to NGR, the Attraction Law of Encryption Games?

The house hopes that players will continue to place bets and increase their bet amounts. Therefore, in online gambling, the actual house edge is often controlled at a balanced point: it cannot let the kill rate be too low to affect profits, nor can it let the kill rate be too high to lead to player loss. The key is to provide players with certainty in odds and to reach a consensus on this.

The main difference between encryption games and traditional gambling lies in whether players can accept variable odds. The odds framework in traditional gambling games is relatively fixed, while in cryptocurrency trading, the odds of different tokens can vary significantly at different times.

The gambling industry focuses on consensus mechanisms and odds frameworks, with its target audience primarily seeking an advantage within fixed rules. This does not completely overlap with the characteristics of cryptocurrency speculators or traders. The gambling industry does not require a wide variety of games, but rather a widely adopted mechanism.

In terms of controlling the kill rate, there are fundamental differences between gambling, contract trading, and encryption currency trading:

  1. Gambling: Fixed odds, no liquidity, completely controllable kill rate.
  2. Contract trading: The odds are relatively fixed (for major currencies), there is a certain level of liquidity, and the kill rate is relatively controllable.
  3. Cryptocurrency trading: The odds are not fixed, highly liquid, and the kill rate is difficult to control.

Insights from the Gambling Industry: From GGR to NGR, the Laws of Attraction in Encryption Games?

The less fixed the odds are, the greater the liquidity of the chips, making it more difficult to control the kill rate. This also explains why most games, whether they belong to the gambling category or not, do not adopt an absolute true random mechanism.

The kill rate directly affects the lifecycle GGR of players' units. From gambling to cryptocurrency trading, user stickiness is gradually decreasing, which directly impacts user growth and conversion logic.

Insights from the Gambling Industry: From GGR to NGR, the Attraction Rules of Encryption Games?

In terms of growth strategy, the gambling industry commonly uses the concepts of "mud code" and "washing code". Mud code is only used for betting and cannot be redeemed, while cash code can be exchanged in both directions. Each bet is a wash code, and intermediaries can receive commissions, and even players can receive rebates. This mechanism is similar to the commission system of contract exchanges.

Insights from the Gambling Industry: From GGR to NGR, the Attraction Principles of Encryption Games?

The mud code locks in liquidity, directly promoting betting (trading) behavior. Wash code and rebate essentially form a consistency of interests that creates key growth nodes; the larger the turnover, the more profit is made, while also ensuring the controllability of the kill rate, thus improving the GGR per unit lifecycle.

For encryption game teams, it is important to recognize the differences between encryption players and traditional game players. They do not simply consume for entertainment; rather, they expect returns. Therefore, game design should fully consider the gambling model, determine a suitable GGR strategy for the project, and develop a reasonable revenue model and kill rate control methods. At the same time, strategies for customer acquisition and retention from traditional gambling industries can be referenced to optimize user experience.

Insights from the Gambling Industry: From GGR to NGR, the Attraction Laws of Encryption Games?

Insights from the Gambling Industry: From GGR to NGR, the Attraction Laws of Encryption Games?

Insights from the Gambling Industry: From GGR to NGR, the Attraction Principles of Encryption Games?

Insights from the Gambling Industry: From GGR to NGR, the Laws of Attraction in Encryption Games?

Insights from the Gambling Industry: From GGR to NGR, the Attraction Principle of Encryption Games?

Insights from the Gambling Industry: From GGR to NGR, the Attraction Laws of Encryption Games?

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 7
  • Share
Comment
0/400
ContractTestervip
· 07-13 12:36
I took the risk and tried!
View OriginalReply0
NFTRegrettervip
· 07-10 20:35
play people for suckers play people for suckers... after all, just lying there getting slaughtered
View OriginalReply0
DaoResearchervip
· 07-10 17:26
Based on the data model, this profit framework is not an optimal solution. The loss control indicators need to be restructured...
View OriginalReply0
SingleForYearsvip
· 07-10 17:21
It's good not to lose, but I don't recommend touching it.
View OriginalReply0
BearMarketGardenervip
· 07-10 17:17
Even with money, I dare not touch gambling.
View OriginalReply0
MetaLord420vip
· 07-10 17:06
Won a lot, damn it
View OriginalReply0
StableNomadvip
· 07-10 17:02
reminds me of ICE poker's death spiral tbh... statistically speaking house always wins
Reply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)